Page 198 - Performance Leadership

Chapter 10 The Social Role of Organizations • 187

organization’s management claims that its organizational structure, full
of checks and balances, is responsible for this rating and performance.
In its GRI framework-based annual sustainability report, Rabobank
describes how it is active in all facets of the social dimension. 23
Rabobank has all the environmental measures in place that fit a com-
pany in financial services. It tries to make use of recycled paper as much
as possible, and it only allows company cars with low fuel consumption.
But the impact of CSR goes much deeper into the business model. Like
Nike, the CSR program is an instrument for risk mitigation. Rabobank
will not involve itself with certain industries and countries, and it has
an ethics commission to oversee these business restrictions. Risk man-
agement is also important on the microlevel. Rabobank’s credit asses-
sors are using CSR-related criteria as part of loan application reviews.
To qualify for a loan, Rabobank’s customers need to comply with
certain labor conditions, regulations, and environmental standards.
But most important, CSR plays an important role in creating a com-
petitive differentiation. Because Rabobank has strong ties to local com-
munities, throughout its existence it has followed the principles of CSR.
Corporate philanthropy, where local banks sponsor local cultural ini-
tiatives, sports clubs, and other events, magnify the bank’s community
roots, making the bank visible and accessible for all.
Rabobank has created a carbon emission reduction program for its
credit card holders. Credit card payments are recognized and catego-
rized, representing, for instance, clothing, food, or gas. Each category
has a certain environmental rating, and the total of all credit card pur-
chases is turned into “carbon credits.” Rabobank invests these credits
in sustainable energy and energy reduction projects.
Another initiative is Rabobank International Advisory Services
(RIAS). RIAS is a consultancy division that supports banks in the field
of rural banking and cooperative development. By infusing expertise
into emerging markets, Rabobank will benefit by having access to these
markets through the work it does with local banks.
Rabo Green Bank, one of Rabobank’s initiatives, is the leading sup-
plier of “green funding.” The bank brokers between investors who want
to invest in green initiatives and entrepreneurs who are looking to
finance their green initiatives. Rabo Real Estate invests in affordable
middle-income housing. In the food and agribusiness, Rabobank has